In US economic data, consumer inflation expectations for the year ahead fell from 6.2% to 5.7% in August (survey: 6.1%).

European sharemarkets climbed on Monday. Investors focussed on attempts by a number of countries to support utilities and consumers as energy prices continued to rise. Banks, which gain in a rising interest rate environment, lifted 3.4%. And retail stocks rose by 4.5%. The pan-European STOXX 600 index rose by 1.8%. The German Dax index gained 2.4% and the UK FTSE index lifted 1.7%. In London trade, shares in Rio Tinto (+1.7%) and BHP (+2.1%) both advanced.

US sharemarkets rose on Monday. Investors await key inflation data on Tuesday. Shares of Apple rose 3.9% in continued positive reaction to it new iPhone and Apple Watch products. KFC and Pizza hut operator Yum Brands rose 1.0% after its $2 billion share buyback announcement. At the close of trade, the Dow Jones index was up by
230 points or 0.7%. The S&P 500 index gained 1.1% and the Nasdaq index added 154 points or 1.3%.

US longer-term treasuries were weaker on Monday (yields higher). The US Treasury sold US$41bn of 3-year notes at a yield of 3.564%. The US Treasury also sold US$32bn of 10-year notes at a yield of 3.33%. US 10-year yields rose by 3 points to 3.35% and US 2-year yields were steady near 3.57%.

Major currencies were stronger against the US dollar in European and US trade. The Euro rose from lows near US$1.0080 to highs near US$1.0198 and was near US$1.0115 at the US close. The Aussie dollar rose from lows near US68.35 cents to highs near US69 cents and was near US68.85 cents at the US close. And the Japanese yen firmed from near 143.50 yen per US dollar to JPY142.20 and was near JPY142.75 at the US close.


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Global oil prices rose on Monday. US emergency oil stocks fell 8.4 million barrels to 434.1 million barrels in the past week, its lowest since October 1984, according to data released on Monday by the Department of Energy. Reuters report that “France, Britain and Germany also on Saturday said they had “serious doubts” about Iran’s intentions to revive a nuclear deal. Failure to revive the 2015 deal would keep Iranian oil off the market and keep global supply
tight.” The Brent crude oil price rose by US$1.16 or 1.2% to US$94.00 a barrel. And the US Nymex crude oil price lifted by US99 cents or 1.1% to US$87.78 a barrel.

Base metals were mostly higher on Monday rising by between 0.8- 6.9% with nickel up the most. But aluminium was the exception, down 0.3%.

The gold futures price rose by US$12.00 an ounce or 0.7% to US$1,740.60 an ounce. Spot gold was trading near US$1,725 an ounce at the US close. Iron ore futures fell by US62 cents or 0.6% to US$101.61 a tonne.

Ahead: In Australia, the CBA Household Spending Intentions (HSI) report is issued with business and consumer confidence surveys and travel data. In the US, inflation data features with the NFIB small optimism index and monthly budget statement.

Originally published by CommSec